As organisations navigate the evolving workplace landscape, HR leaders are looking for innovative strategies to foster a thriving culture. During our recent new-research-focused HR.com webinar, Awardco's Center of Excellence shared data-driven insights and practical strategies for building impactful recognition programs.

Why employee engagement matters

Employee engagement reflects how connected and committed employees are to an organisation’s mission. Engaged employees are more productive, innovative, and loyal, leading to improved business outcomes. However, disengagement remains a significant challenge, costing companies billions in lost productivity.

Our research supports this: employees who had been recognised in the last three months had an average engagement score of 76%, compared to just 38% for those who hadn’t. Recognition alone accounted for nearly a third of changes in engagement and had a measurable impact on inclusion, well-being, and even intent to stay.

Key trends shaping employee engagement and recognition

1. The rise of remote and hybrid work

Maintaining employee engagement has become more complex as organisations adopt remote and hybrid models. While remote work offers flexibility and talent access, it can also lead to communication gaps and isolation.

Strategy: Implement digital recognition platforms that integrate with communication tools like Microsoft Teams or Slack. Regularly check in with remote employees and provide recognition through virtual shoutouts, spot bonuses, or team-wide acknowledgments.

2. Digital transformation in employee recognition

Technology is playing a pivotal role in modern recognition programs. Platforms enable real-time recognition, peer-to-peer appreciation, and provide data-driven insights into engagement trends.

Strategy: Use technology to automate milestones, enable peer-to-peer recognition, and generate actionable analytics. These insights help organisations fine-tune recognition efforts and demonstrate ROI.

3. Personalised and frequent recognition

Traditional service awards alone no longer resonate. Today’s employees crave frequent, meaningful recognition.

Strategy: Shift from annual to continuous recognition. According to our research, employees who receive recognition from managers at least every three months maintain significantly higher engagement. There's no such thing as too much recognition—even weekly recognition has a positive effect.

4. Aligning recognition with organisational values

Effective recognition reinforces the behaviours and values companies want to see. These value-driven recognitions tie behaviours to culture and keep people engaged.

Strategy: Tie recognition to company values. Use recognition to reinforce cultural norms, spotlight top performers, and promote desired behaviours. Company awards were found to be the most impactful recognition method across all employee groups.

Actionable strategies to enhance employee engagement

1. Optimise recognition frequency

Recognition has a shelf life. For managers, aim for recognition at least every three months. For senior leaders, annually is the minimum.

2. Use high-impact recognition modes

Not all forms of recognition are equally effective. Company awards, emails from managers, and private one-on-one conversations have the most positive impact. Instant messages (like Slack or Teams) showed no measurable benefit.

3. Celebrate birthdays and service anniversaries

These small moments matter. Employees who received birthday recognition had 30% higher engagement scores than those who didn’t. Service awards also contributed to significantly improved employee sentiment.

4. Choose redemptions that drive impact

Gift cards are popular (preferred by 73% of respondents), but they don’t necessarily increase engagement. Company-branded swag, team activities, and personalised gifts were more effective in boosting connection and motivation.

5. Train managers on recognition best practices

Managers who receive training on recognition are more likely to provide both formal and informal recognition, resulting in performance and satisfaction gains.

6. Avoid over-reliance on demographics

Despite popular myths, recognition preferences don’t vary significantly by generation, gender, or seniority. Recognition is a universal driver of engagement, and program strategies should focus on behaviour rather than demographic assumptions.

Looking ahead: the future of employee engagement

The path forward is clear: recognition is no longer optional—it's essential. Our COE's research confirms that meaningful recognition significantly boosts employee engagement, inclusion, and well-being, HR leaders now have the data they need to justify investment.

Recognition programs should be:

• Frequent: More is better, especially from managers.
• Personalised: Use modes that matter most, like awards or written notes.
• Strategic: Tie recognition to values and goals.
• Measured: Use platform data to show progress and adjust accordingly.

By evolving recognition practices with these insights, organisations can create a more motivated, loyal, and high-performing workforce.

Employee recognition is not just a feel-good perk—it’s a strategic lever for business success.

Watch the full webinar here to learn more about this new research.